No More Mortgage Fears for First-Time Homebuyers
Anyone who was interested in buying a home in the last five years has been painfully aware that things are nowhere near the same as they were before the entire real estate market literally fell apart in 2007. Many still remember the collapse of Northern Rock, which was kind of the bagpipe wail which indicated that the good times had come to an end, at least for the moment. Like everything in life, things go in circles. Good times are followed by bad times, which are followed once again by good times. Anyone who’s been around at least several decades has seen this ebb and flow in action.
When Markets Dry up
Most first-time homebuyers who tried to take advantage of the collapse in real estate values across the UK in the last several years have found it extremely difficult to get any reasonable loan, if any loan at all. Banks in the UK, as well as other lending institutions, such as mortgage companies, found themselves saddled with a lot of properties that were worth far less than what was listed on the mortgages. That is the principal reason why Northern Rock wound up in the giant sinkhole of history. As the nation slowly slid into a recession, many aspiring homebuyers found that their incomes were not sufficient to qualify for a reasonable loan. Banks adopted a reactionary pose, questioning every loan application and scrutinizing each one under a microscope. Very few first-time buyers passed inspection. As a result, they had put their dreams on hold until times changed.
The Skies Are Opening
Recent figures from the Council of Mortgage Lenders (otherwise known as the CML) track a wide variety of statistics related to mortgage lending. The good news is that in 2012, there was some meaningful and positive improvement in the number of loans granted to first-time homebuyers. Their numbers indicate that the increase was just over 12% compared to 2011 and also had the distinction of being the most loans of its kind since the collapse of the real estate market in 2007. This bodes well for aspiring first-time homebuyers. Perhaps things are finally going to turn their way.
The change, or rather the increase in lending, was not because banks and other lending institutions decided to throw caution to the wind. The government did their part, by introducing the Funding for Lending programme in August. It made money available specifically for this purpose and allowed lending institutions to have a viable and trustworthy source of funds to disperse.
Making It Happen
With so many more first-time homebuyers entering the market (there were over 200,000 last year alone), housing prices are beginning to increase substantially. Given that fact, it might be a good time for you to consider selling your home. Chances are you don’t want to go through all the fuss and bother of putting it on the market, waiting for myriads of potential buyers to trample through your home. What you’re looking for is a far simpler and uncomplicated solution, one that provides results fast. In my opinion selling a house within six months is quick. There is no reason why you cannot expect the same results, if not better.
As real estate is one of the underpinnings of our economy, the fact that prices are rising and people are buying only helps the UK to gradually ease its way out of the recession that it has been mired in for the last several years. We can only hope that this trend accelerates and we can all smile again.